Karnataka Lokayukta Police Submits Final Report in MUDA Land Allotment Case
The Karnataka Lokayukta police filed their final investigation report on Tuesday. This report concerns alleged corruption in housing site allotments by the Mysore Urban Development Authority. The case specifically involves sites allotted to Chief Minister Siddaramaiah's wife in 2021.
Court Deadline and Contempt Application
A special court for cases involving elected representatives had set a strict deadline. On October 9, the court gave the Lokayukta police two months to file their final report. The police missed this deadline by over a month.
RTI activist Snehamayi Krishna filed the original complaint in 2024. She alleged corruption in the allotment of 14 housing sites to the CM's wife. On December 23, 2025, she moved a contempt-of-court application against the police. She cited delays in submitting the final report.
Previous Closure Report and Court Direction
The Lokayukta police initially tried to close the case. In February 2025, they filed a B report, or closure report. They stated a lack of evidence that Siddaramaiah gained Rs 56 crore from the transaction.
The special court reviewed this closure report in April 2025. The court neither accepted nor rejected it. Instead, judges directed the police to continue their investigations. They ordered the filing of a comprehensive final report.
Recent Developments and Sealed Cover Submission
On Tuesday, the special court noted the filing of a sealed cover document. The Lokayukta police submitted this as their final report in the MUDA scam probe. The court has posted the matter for a decision on the closure report to January 22.
The court observed from records that the learned Special Public Prosecutor furnished another sealed cover. This cover allegedly contains the final report.
Earlier, on December 18, 2025, the court asked police to provide the case diary. This request came after the Lokayukta police sought more investigation time. The request followed the arrest of former MUDA chairman G T Dinesh Kumar.
Enforcement Directorate's Parallel Investigation
The Enforcement Directorate filed a protest petition against the Lokayukta police closure report. In April 2025, the special court said the ED could continue its own investigations. These investigations relate to a Prevention of Money Laundering Act case registered over the MUDA land allotments.
On November 14, 2025, ED filed a prosecution complaint against former MUDA commissioner G T Dinesh Kumar. Kumar faces allegations of illegal allotment of MUDA land. Authorities arrested him in September 2025, and he remains in prison.
The Karnataka Lokayukta police took Kumar into custody for one day on December 17, 2025.
The ED stated that evidence indicates Kumar's active involvement. They allege he participated in a comprehensive money laundering scheme at MUDA during his tenure as commissioner.
Property Attachments and Court Rulings
The Enforcement Directorate has provisionally attached 142 properties. These properties are worth approximately Rs 300 crore. The attachment connects to investigations into alleged large-scale irregularities in MUDA site allotments.
However, the ED did not attach properties belonging to the Chief Minister's family.
The Karnataka High Court quashed a summons issued by ED to the CM's wife and Urban Development Minister B S Suresh. On March 7, the court emphasized that individuals cannot be compelled to give statements in PMLA cases without incriminating material. The Supreme Court later upheld this order.
Judicial Commission Findings
A judicial commission headed by retired high court judge P N Desai submitted its report in September 2025. The commission investigated allegations of corruption and maladministration in MUDA.
The commission found no wrongdoing in the CM's wife receiving 14 developed housing sites. These sites compensated for 3.16 acres wrongly acquired by MUDA.
However, the Justice P N Desai commission identified large-scale irregularities in MUDA's functioning between 2020 and 2024. The commission recommended criminal investigations against MUDA officials. It also suggested cancellation of site allotments made under the 50:50 scheme after March 2023.
The commission noted that the MUDA scheme for alternative site allotment contained many loopholes. It appeared designed to benefit illegal claimants. The sudden increase in demands for alternative sites during 2020-2024 suggested possible connivance with MUDA officers. The commission described the situation as potentially scandalous.
Case Background and Key Allegations
The controversy centers on allotments made in 2021. MUDA allotted 14 housing sites to Chief Minister Siddaramaiah's wife. This occurred in exchange for a 3.16-acre property.
Following public controversy, the CM's wife returned all 14 housing sites to MUDA in 2024.
The Lokayukta police indicated they await government sanction. This sanction is necessary for prosecuting several accused public servants in the case.
The ED described the alleged modus operandi for illegal allotments. It involved identifying ineligible beneficiaries and using fake or incomplete documents. Allotment letters were allegedly back-dated in violation of government orders.
The agency said gratification for illegal allotments routed through a cooperative society. Funds also moved through bank accounts of relatives or associates of key figures. This gratification allegedly purchased some illegally allotted MUDA sites in relatives' names.
